Health Insurance and Divorce Mediation in NJ

One of the most difficult issues facing a couple in divorce mediation these days is the issue of health insurance post-divorce.  You would think it would be spousal support / alimony or child support but oddly enough, the couples we see at Equitable Mediation Services manage to agree on these topics just fine 99% of the time.   I’ll spare you my soapbox lecture about health care in this country for another day as I’m a NJ divorce mediator and not a politician but suffice to say, often times the options aren’t good.

First is the idea of divorce from bed and board.  In New Jersey, there are no provisions for legal separation so divorce from bed and board was thought of as a way for couples to go through equitable distribution yet still be legally married.  This was especially important to couples where divorce may be viewed as a sin in certain religious circles.  A side benefit was it allowed couples to remain on each others health insurance plans since they were still technically married but over the years insurance companies have caught on to this and many have disallowed it explicitly.  Notice I said many and not all so perhaps this is an option you can consider just be sure to check with your insurance company and an attorney before you proceed.

Second is to just ask.  Because divorce is more prevalent in today’s society, some insurance companies are allowing ex-spouses to remain on policies at the same rate for up to three years, giving them time to consider their options when they’re through the divorce process and are thinking a bit more clearly.  That being said, it’s important your NJ divorce mediator puts this clause in the Memorandum of Understanding and outlines how long you will access to the insurance as well as how is it paid for.

Third is the option of COBRA.  From the Department of Labor’s website:  “COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. This coverage, however, is only available when coverage is lost due to certain specific events.” If negotiated during divorce mediation, you as an ex-spouse may have the option of paying for the insurance  you once had provided to you by your soon to be ex-spouse for a period of 18 months.  And while yes it will be more than expensive than it was before, at least it will give you time to consider your options while remaining covered.  Again make sure your NJ divorce mediator puts this clause in the Memorandum of Understanding.

If you have any questions about divorce mediation in NJ using mediation for divorce or how hiring a NJ divorce mediator can benefit you, please feel free to contact Equitable Mediation Services to schedule a free, no-obligation consultation in one of our nine North or Central New Jersey office locations.  Or feel free to visit the Equitable Mediation Services website where you’ll find lots of great information about parenting plans, equitable distribution, NJ child support and spousal support / alimony and contact us when you’re ready.

DISCLAIMER: This article is not intended to give any legal advice and I am neither for or against using any of these options in your particular circumstances so be sure to check with the appropriate sources to determine the feasibility or applicability in your particular situation.